Winners M&A Awards 2023
After a preliminary research and selection process supported by our knowledge partner Vlerick Business School, the jury reviewed 72 extensive pitches (submitted by the M&A community), nominated 18 finalists in six categories and chose one winner for the Lifetime Achievement Award. View all the nominees here.
All deals have been thoroughly evaluated by the jury. The judges determined the winners by scoring each deal on criteria such as value creation, strategy, complexity, financing structure, entrepreneurship, etc. See all criteria in the Regulations 2023.
The winners of the M&A Awards 2023 were announced during the gala evening on 23 November at Brussels Expo, Paleis 10, in Brussels.
Best Large Cap Corporate Deal 2023
Orange Belgium acquires VOO
Comments of the jury
The jury’s decision to choose Orange’s acquisition of VOO underscores the recognition of the deal’s immense complexity and strategic importance for all stakeholders involved. This landmark transaction not only reshapes the Belgian Technology, Media, and Telecommunications (TMT) landscape but also establishes a third national convergent telecom operator, promising significant implications for competition and innovation in the industry.
Orange Belgium acquires VOO
Facts
| Category: | Best Large Cap Corporate Deal 2023 |
| Deal: | Orange Belgium acquires VOO |
| Date: | 02/06/2023 |
| Published value: | € 1.8 billion |
| Buyer: | Orange |
| Target: | VOO SA |
| Seller: | Nethys |
Involved firms and advisors buy side:
Linklaters LLP, legal adviser
Latham & Watkins LLP, legal adviser
Mazars, transaction services adviser
BNP Paribas, financial adviser
Involved firms and advisors target:
N.A.
Involved firms and advisors sell side:
Cleary Gottlieb Steen & Hamilton LLP, lead legal adviser to Nethys and Enodia in the consolidation of the cable within VOO SA and the sale of 75% less one share of VOO SA to Orange Belgium.
Arteo Law, legal tax adviser to Nethys and Enodia in the consolidation of the cable within VOO SA.
Simont Braun, legal adviser to Brutélé.
Rothschild & Co (Belgium), financial adviser to Nethys.
Deloitte (Transaction Services, financial and tax vendor due diligence)
Brief description / Deal outline:
The deal involves the municipality-owned company Nethys and its parent company Enodia in the sale of a 75% stake minus one share in telecom operator VOO SA to Orange Belgium. The transaction signed on December 24, 2021 and closed on June 2, 2023. It is based on an enterprise value of €1.8 billion for 100% of the capital of VOO SA. The signing of the transaction concluded a competitive sell-side M&A process run in 2021, which Cleary helped design and execute, with 27 candidates admitted in the non-binding phase and highly competitive binding phases opposing strategic investors, including the Orange group. Closing of the transaction remained subject to several conditions precedents, including approval of the transaction by the European Commission. Such approval was obtained on March 20, 2023, following an in-depth investigation (phase 2) of about 9 months, as part of which Cleary also represented Nethys.
VOO SA is a telecom operator that owns the cable network in the Walloon region and part of the Brussels region and an MVNO active in these two regions.
Orange Belgium, a 77% subsidiary of Orange SA, is a mobile network operator and FVNO active in Belgium and listed on Euronext Brussels.
Immediately prior to closing, on June 1, the TMT business of fellow municipality-owned company Brutélé was contributed to VOO SA as part of a complex pre-closing reorganization plan. The contribution of Brutélé’s TMT business occurred after Enodia completed the acquisition of Brutélé’s shares, on “back-to-back” terms with the 30 municipalities that currently own Brutélé, earlier that day. Brutélé was merged with and into Enodia immediately thereafter.
At closing, Nethys and Orange Belgium entered into a shareholders’ agreement to organize their relationship as shareholders of VOO, including governance rights providing assurances to Nethys as to the implementation of an investment plan, which includes cable modernisation and fibre optic (FTTH) rollout, and granting liquidity rights to Nethys regarding its residual 25% stake in VOO SA.
Why should this deal win the Award for Best Large Cap Corporate Deal?
Submitted by Cleary Gottlieb Steen & Hamilton
A transformative transaction
The transaction is a landmark deal in the Belgian TMT sector, with an enterprise value of €1.8 billion for 100% of the capital of VOO SA, making this deal one of the largest transactions that closed this year.
The transaction transforms the Belgian TMT landscape as it creates a national convergent telecom operator with an ambitious investment plan. VOO – to which Brutélé’s TMT business was contributed at closing of the transaction – has a strong position on the broadband, television and premium content markets in Wallonia and parts of Brussels, while Orange Belgium is well-known for its mobile services in Belgium. By combining VOO’s fixed TMT infrastructure with Orange Belgium’s mobile TMT infrastructure, the transaction creates a new, all-round player on the Belgian market.
Further, Orange Belgium has committed to implement an investment plan of several hundred millions euros in fixed broadband, so as to enable VOO to maintain its network leadership and preserve its growth and development over the long term. This plan will support the digital ambition of the Get-Up Wallonia plan and particular attention will be paid to schools and industrial areas.
Finally, as part of the “remedies package” presented to the European Commission, Orange Belgium committed to provide to Telenet for at least 10 years access to the VOO and Brutélé fiber networks, in Wallonia and Brussels, and to Orange’s future fiber-to-the-premises network. In parallel to these commitments, Telenet has offered Orange access to its hybrid coaxial network and to its future FTTH network for 15 years, strengthening the combined entity’s nationwide convergent strategy and fostering investment and competition in the Belgian telecoms market.
In short, this means that the transaction creates a new national player able to offer innovative products, services and applications to all citizens and business across Belgium and to contribute to the implementation of the EU’s broadband strategy.
Unlocking opportunities for public sector shareholders
The transaction unlocks significant opportunities for Nethys, its parent company Enodia and ultimately, its shareholders, i.e., the Liège province and 74 municipalities. Specifically, it will allow Enodia to distribute part of the sales proceeds to its shareholders and Nethys to use the rest to implement an ambitious investment plan, contributing to the development of the broader Walloon region. This will provide opportunities to the public sector shareholders, including those municipalities that were heavily affected by, and are still recovering from, the floods of 2021.
Following an unprecedented and complex process
The transaction is the culmination of a historical process of integration of fixed TMT infrastructure in the Walloon region.
While attempts had been made both to combine Brutélé and Enodia (where VOO’s TMT activity was historically located) and to sell VOO to a private actor in previous years, those had been unsuccessful. As of 2020, Nethys’ new management launched a new process to sell a majority stake in VOO. In order to unlock the combined value of both VOO SA and Brutélé, it was decided that Enodia would acquire Brutélé, contribute its TMT activity to VOO SA, whereby Brutélé’s shareholders would receive a part of the sales proceeds attributable to Brutélé’s TMT activities.
The fact that that Enodia/Nethys is owned by public sector shareholders, and the prior acquisition and integration of Brutélé’s TMT business into VOO, rendered the deal process and structure both unique and particularly complex. Among others, it required designing and executing a sales process which was inspired by public procurement rules, and securing the competent minister’s assent on key decisions throughout the process in accordance with applicable laws. The integration of Brutélé required a full back-to-back deal between Brutélé and Enodia, on the one hand, and Nethys and Orange Belgium, on the other end.
In addition, the transaction was subject to particular scrutiny by the European Commission, through a phase II investigation. As part thereof, Orange Belgium offered a remedies package allowing to close the transaction approximately 18 months after signing.
What was the deal rationale?
The deal rationale was twofold. First, it allowed Nethys to unlock the value created by VOO SA over decades, so as to distribute part of the sales proceeds to its ultimate shareholders and implement an ambitious new investment plan. Second, the deal created a unique opportunity for Nethys to keep a significant steek in a national powerful convergent telecom operator, benefiting from ambitious investments by its new majority shareholder Orange Belgium.
Where lies the value creation?
The deal allows for significant synergies, as Orange Belgium has a mobile network and VOO has a fixed network, both with a wide array of expertise. Moreover, both brands have strong distribution networks; content and customer bases. This allows for the creation of a key telecom operator, which can draw on various brands and fully owned encompassing TMT infrastructure. The agreements concluded with Telenet will allow geographical expansion into parts of Brussels and the Flanders region.
In addition, the investment plan, consisting of cable modernisation and fibre optic (FTTH) rollouts, and the pooling of the two companies’ skills will ensure and strengthen the quality of VOO’s network in the long term, serving customers.
Moreover, Orange Belgium is committed to developing WBCC, VOO’s call centre, and intends to strengthen BeTV, another VOO subsidiary.
What is the impact of this deal for the stakeholders?
The deal will ensure that VOO’s TMT network is developed and enhanced through investments, resulting in a modern and efficient cable network for all inhabitants of the Walloon region and certain Brussels municipalities. Moreover, it should create more choice and better services for prospective users across the country.
Through veto rights that Nethys will retain, the deal also ensures amongst others that employment at VOO and its subsidiaries is preserved, including for statutory personnel that could not be transferred to VOO, that the operations of VOO’s call centre WBCC are maintained and that preference is given to VOO’s local subtractors. This will ensure that VOO continues to be an important employment provider in the Brussels and Walloon regions and contributes to its economic development, both directly and indirectly.
What was particular about the deal process?
As indicated above, the deal process and structure were unique and particularly complex due to (i) the fact that the Enodia/Nethys group is ultimately owned by public sector shareholders as well and (ii) the acquisition of Brutélé and the integration of its TMT activities into VOO prior to the sale of a majority stake in the combined entity to Orange Belgium.
First, Enodia and Brutélé are intermunicipal cooperative companies (“sociétés cooperatives intercommunales”), whereas Nethys, as a subsidiary of Enodia, is a private company with significant local participation (“société à participation publique locale significative”). Those entities are subject to specific regulation, in particular the Walloon decree on local governance (“Code de la démocratie locale et de la décentralisation” or “CDLD”).
This had multiple consequences on the process and the transaction. First, it led to designing and executing an competitive sales process, inspired by public procurement rules. Second, all decisions by Nethys and Enodia’s board are subject to either prior approval or review by the competent Walloon minister, who can decide to annul such decisions. This required regularly informing the competent public authorities of developments throughout the process and securing their support. Third, in addition to company law, the rules of the aforementioned Walloon decree on local governance had to be applied to the corporate restructuring procedures for the integration of Brutélé’s TMT business in VOO. The application of the CDLD raised various unprecedented legal questions, as the legislation had not been designed for complex corporate transactions such as the present deal.
Second, a key element of the transaction was the sale of the combined VOO-Brutélé TMT infrastructure and business to Orange Belgium, the combined value of which is higher than their standalone value. This was achieved by implementing a complex pre-closing reorganization plan, consisting of (i) the purchase of Brutélé’s shares by Enodia, (ii) the transfer of Brutélé’s statutory personnel to Enodia through public law mechanisms, (iii) the contribution of Brutélé’s TMT business to VOO SA in exchange for VOO SA shares, (iv) the merger of Brutélé into Enodia and (v) the sale by Enodia of the VOO SA shares to Nethys. The proceeds of the sale to Orange Belgium related to Brutélé’s TMT business were then up-streamed to Enodia and subsequently paid to the Brutélé shareholders.
This particularly complex auction process first, and pre-closing reorganization plan then, required more than two years of work. The pre-closing reorganization plan was then executed on the day prior to closing of the sale of a majority stake in VOO, allowing to close the sale to Orange Belgium on June 1, 2023.
Do the management or entrepreneurs deserve a special mention?
Nethys’ management and directors who were appointed in the Fall of 2020, consisting of Renaud Witmeur (CEO ad interim) and Laurent Levaux, Bernard Thiry and Jean-Pierre Hansen (Directors), were instrumental in negotiating the transaction. Gregory Demal (CEO since mid-2022) and Delphine Chaput (CLO) were key in getting the deal through.
Special mention should also be given to the teams and advisors of all entities involved, including the Enodia, VOO and Brutélé teams involved in the sale of Brutélé to Enodia and the integration of Brutélé’s TMT activities into VOO, and the Nethys, VOO and Orange teams with regards to the sale of VOO (including Brutélé’s TMT activities) to Orange.
Best Mid Cap Corporate Deal 2023
Cegeka acquires Computer Task Group Incorporated
Comments of the jury
The jury honoured the acquisition of Computer Task Group by Cegeka. CTG is a leading provider of digital transformation solutions. The acquisition of the American company will allow Cegeka to become a true global IT integrator with a turnover of 1,4 billion euro. It is the temporary cherry on the cake of the growth path mapped out by the Knaepen family, the owner of Cegeka, and their co-shareholder Gimv.
Cegeka acquires Computer Task Group Incorporated
Facts
| Category: | Best Mid Cap Corporate Deal 2023 |
| Deal: | Cegeka acquires Computer Task Group Incorporated |
| Date: | Closing is expected to take place in Q4 2023 |
| Published value: | $ 170 million |
| Buyer: | Cegeka Groep NV |
| Target: | Computer Task Group Incorporated |
| Seller: | Publicly listed company (Nasdaq) |
Involved firms and advisors buy side:
Finance, Tax & HR DD: KPMG
Legal DD & Transaction services: DLA Piper
Investment banker: Stifel
Financing: KBC, ING, Belfius
Involved firms and advisors sell side:
Transaction services: Baker McKenzie
Investment banker: Raymond James
Brief description / Deal outline:
Cegeka Groep NV, a Belgium-based leading European IT solutions company, and Computer Task Group, Incorporated (Nasdaq: CTG), a leader in North America and Western Europe helping companies employ digital IT solutions and services to drive their productivity and profitability, announced on August 9th, 2023 that they have entered into a definitive agreement under which Cegeka agreed to acquire CTG for $10.50 per share of common stock in an all-cash transaction, representing an implied equity value of approximately $170 million.
CTG is a leading provider of digital transformation solutions with a strong client base across high-growth vertical markets, focused primarily on healthcare, finance, energy, manufacturing, and government. The Company had $325 million in 2022 revenue and $306 million in trailing 12-month revenue as of June 30, 2023. This transaction aligns with Cegeka’s long-term strategic vision for growth and ambition.
“This merger is a logical next step in the continuous growth journey of Cegeka. In CTG, we find a partner that complements our customer and service portfolio and strengthens our capabilities and knowledge,” said Stijn Bijnens, CEO of Cegeka.
“Together, we can deliver enhanced value to customers across North America and Europe. As we proceed with the acquisition process, we look forward to welcoming the employees of CTG across India, Colombia, Europe, and North America,” said André Knaepen, Chairman of the Board of Directors of Cegeka.
“We are excited to enter into this transaction with Cegeka, which is a testament to the significant efforts we have undertaken to drive our transformation strategy to make CTG a pure-play digital IT solutions provider,” said Filip Gydé, CTG President and CEO. “At CTG, our mission is to drive better, faster results for our customers with high-value digital transformation solutions. In Cegeka, we are pleased to have found a partner that will enable us to accelerate this important work. We are confident that joining with Cegeka is in the best interest of our employees, will continue to drive the high-value services and solutions our customers have come to expect, and will deliver immediate value to our shareholders.”
Financial Highlights
The acquisition is expected to bring Cegeka to an annual turnover in 2024 of € 1.4 billion (€ 823 million in 2022), employing over 9,000 people (6000+ in 2022) with a presence in 18 countries (12 in 2022). In short, this transaction will move Cegeka from a leading European IT solutions company to a Global IT integrator. After closing, CTG will become a privately held company, and shares of CTG common stock will no longer be listed on any public market.
Why should this deal win the Award for Best Mid Cap Corporate Deal?
Submitted by Cegeka
This deal is a milestone deal, not only for Cegeka but also for the Belgian technology industry in general. For Cegeka, this acquisition is a testament to the continuous growth over its 30-year history. Cegeka has realized an impressive track record of continued, profitable growth over its existence, both organically and inorganically. Cegeka matured from being a Belgian company initially, to a Benelux company subsequently and to a European company currently. The CTG deal is the next big step in this growth track, transforming Cegeka from a European IT company to a truly global player, active in 18 countries and spanning 4 continents. The combined group’s growth is expected to hit a revenue milestone of 1.4 billion EUR by 2024, coming from just 560 million EUR 5 years ago. This represents an impressive CAGR of >20%.
The acquisition also aligns perfectly on a strategic level for both Cegeka and CTG. This combination promises to deliver significant benefits to all parties involved: customers will receive improved service, employees will find a wealth of career opportunities, and ESG initiatives will gain a broader platform to make a meaningful impact, among other advantages.
Aside from Cegeka’s perspective, this acquisition marks a unique milestone in the Belgian technology business landscape. In an environment often confronted with foreign multinationals acquiring Belgian tech enterprises and moving the decision centers out of our country, this deal shows that a Belgian company can gain enough force to make a substantial mark in the vast and competitive US market. It’s an example to all other Belgian IT integrators that a combination of ambition and determination enables thriving on the global stage.
Next to the uniqueness of the deal for Cegeka and for the Belgian tech industry, this deal included a lot of complexity and required careful execution due to the aspect of CTG being a Nasdaq-listed company. The duties of a Board of Directors of a listed company in the US are very stringent, requiring the Board to maximize the value of the company for its shareholders. This meant that a flawless competitive auction needed to be executed, the process of which was made public at the announcement of the deal.
Although Cegeka did not have any experience in delisting a Nasdaq company, we managed to hit all the required deadlines in the process and ultimately succeeded in securing the deal. As a testament to the solid work performed and the competitive nature of the process, a rival bidder was only 25 cents behind on the price per share offered, coming in at 10,25 USD/share versus the 10,50 USD/share that Cegeka offered. However, the big differentiator between the 2 offers was the fact that Cegeka came in prepared, having fully committed financing in place in record time and having finalized its due diligence completely, which added to the deal’s certainty. This flawless execution is what ultimately won the deal.
Next to the competitive auction process, the deal also needed1 clearance from the Belgian Antitrust Authorities (BMA), the Commision de Surveillance du Secteur Financier (CSSF) in Luxembourg, and the Committee on Foreign Investment in the United States (CFIUS). These regulatory approvals further increased the complexity of this deal.
What was the deal rationale?
At the heart of Cegeka’s journey lies a rationale rooted in consistent growth, with entrepreneurship at the very heart of our culture. It means having the vision to see possibilities where others might not, and the courage to take calculated risks to turn those possibilities into realities. This principle has not only propelled us forward but has also shaped our identity as an organization that not only adapts to change but actively seeks it out. It’s what keeps us at the forefront of the technology and services landscape, enabling us to deliver exceptional value to our customers, together.
This acquisition represents a significant milestone for Cegeka, both in terms of its sheer size and its transformative impact. It signifies our evolution from a European player into a truly global force, with a presence in 18 countries spanning 4 continents.
It’s essential also to recognize that this acquisition is a strategic move, in line with our ongoing commitment to growth. In recent years, we’ve strategically acquired notable companies such as Brainforce (2014), Edan Business Solutions (2015), KPN Consulting (2020), Smartschool (2021), SecurIT (2021), Solver Sweden (2022), Dexmach (2022), BuSI (2022), Westpole Italy (2023) and more. This strategic approach underscores our dedication to expanding our reach and capabilities in the ever-evolving landscape of technology and services.
Where lies the value creation?
The potential for synergy in this strategic transformation is profound, promising a shift away from the short-term, quarterly focus often driven by investors towards a more enduring commitment to long-term value creation.
One critical opportunity for synergy lies in customer relationships. Both CTG and Cegeka cater to similar customer profiles and have nurtured long-standing relationships with them based on trust and close collaboration. Through their merger, the combined group will be exceptionally well-positioned to continue serving these customers with an unwavering commitment to quality, fostering close cooperation that further enhances customer satisfaction and loyalty.
Expanding on the synergy potential, we see substantial opportunities in the enrichment of product and service offerings. Specifically, this entails integrating testing and offshoring capabilities into Cegeka’s portfolio and complementing CTG’s offerings with nearshoring capabilities. Beyond this immediate advantage, there’s a wealth of industry intelligence and best practices to be exchanged between the two companies, fostering innovation and exc
Cost efficiency is another tangible benefit. By merging, the need for listing costs becomes obsolete. Additionally, the increased critical mass resulting from the merger positions the company to efficiently bear the burden of overhead structures, driving down operational costs.
Finally, the envisioned geographical expansion is a significant milestone. Shifting from a regional presence within Europe to becoming a truly global enterprise with a footprint in 18 countries spanning 4 continents is a remarkable endeavor. The combined group will be present in: Belgium (HQ), Luxembourg, The Netherlands, Romania, Moldova, Germany, Austria, Czech Republic, Slovakia, Greece, Italy, Sweden and – following the merger – the US, the UK, France, Colombia, Canada and India.
What is the impact of this deal for the stakeholders?
Management and Employees: The synergy of two distinct but very similar company cultures – rooted in collaboration, accessibility, servant leadership, and a people-centric approach – acts as a facilitator for a smooth integration process for management, which in turn fosters a diverse and inclusive workplace for employees, where growth opportunities are abundant.
Clients and Suppliers: Clients will experience an enhanced level of service quality and gain access to a broader range of solutions, while suppliers can rely on stable, long-term partnerships and are encouraged to adopt sustainable business practices.
Society at Large: Beyond the organization, the impact extends to society at large by reducing the environmental footprint, potentially contributing to local economic growth, and staying committed to ESG principles, which encompass environmental responsibility, social inclusivity, and a focus on technology for a better, cleaner and more inclusive world.
End Users: End users can look forward to innovative, technology-driven solutions that prioritize their needs, resulting in more convenient and improved services that enhance their overall quality of life, and this across a very wide range of sectors: healthcare, manufacturing, logistics, energy, finance, education, government, smart cities, etc.
What was particular about the deal process?
CTG was a well-considered potential target, which Cegeka proactively approached to explore a strategic partnership during 2022. Although CTG’s board of directors was planning to continue on a stand-alone basis, our persistent efforts convinced them that a potential strategic partnership would be the best option for the shareholders of CTG. After our initial indication of interest, a formal and competitive auction process was initiated by CTG’s Board of Directors to make sure that the shareholders would receive the highest possible value for the company, in line with their fiduciary duties. With this being a delisting process in the context of Nasdaq, everything was very strictly regulated and timings were crucial to be met. The time to execute once the process was initiated, was very short, with due diligence to be done on 20+ entities in 8 countries in a matter of weeks. On top, financing needed to be completely secured in the same timeframe.
Cegeka was able to hit every deadline that was set in the process, inducing a lot of trust in the BoD of CTG that we were well-prepared and ready to execute. Financing was arranged with 3 Belgian banks (KBC, ING, Belfius) in a very expedited process, leading to a binding commitment by the ‘Best and Final Offer’ deadline, giving a lot of deal certainty for the target’s Board of Directors.
After BAFO submission, one-on-one negotiations continued for a couple of days between the investment banker of CTG and other potential buyers, until exclusivity for a 7-day period was granted to Cegeka to finalize the merger agreement. All terms and conditions of the merger agreement were finalized within the exclusivity timeframe, after which the merger agreement was signed on August 8th and communicated on August 9th, the pre-opening of the Nasdaq stock exchange.
Do the management or entrepreneurs deserve a special mention?
André Knaepen, the founder and chairman of the Board of Directors of IT provider Cegeka, is a visionary leader with a profound impact on the world of IT. Born in 1950, he comes from a humble background that values common sense, respect, authenticity, and entrepreneurship. The genesis of Cegeka traces back to 1992 when André orchestrated a management buy-out of the system development division of the former data center of the Kempische Steenkoolmijnen and Volvo Cars Sint-Truiden. He invested his life savings and made a promise to his team to transform Cegeka into a success story. From its early years, Cegeka has upheld the motto of ‘in close cooperation,’ which remains the cornerstone of how the company positions itself in the market—building long-term relationships based on trust and collaboration. In 2019, André handed over the CEO reins to Stijn Bijnens, and in 2020, he was honored as the ICT Personality of the Year by Data News, a testament to his significant contributions.
Stijn Bijnens is CEO of Cegeka Group NV. Stijn’s career has been marked by pivotal roles, including CEO of LRM NV, VP Security Solutions at Verizon Business, and Senior VP at Cybertrust Inc. He also founded and led Ubizen. With a strong academic background, Stijn has lectured at Trinity College (Ireland) and conducted groundbreaking research at KULeuven, earning a Master of Science in Computer Science. Stijn’s passion lies in emerging technologies, particularly ‘the trinity of innovation’—5G, AI, and hybrid cloud. He’s also a recognized authority in cyber security, risk management, and advocates for the triple helix model of innovation. Stijn is dedicated to mentoring young entrepreneurs, making him a trailblazer in the tech industry. In 2022, he was voted IT Person of the Year by Computable. Other accolades include Manager of the Year (1999) and Doctor Honoris Causa at the University of Hasselt.
Filip Gydé has been active at CTG for over 30 years, starting as a consultant. Filip worked his way up the organization by starting new markets within CTG in France and Luxembourg, eventually becoming responsible for the total European business as VP of Europe within the company. Having achieved multiple successes in this region, he was promoted to the CEO position of the group in 2019. Filip has been of exceptional value to CTG, pushing up profitability levels and bringing strategic focus to the company.
Cegeka culture: ‘In close cooperation’ – the Cegeka tagline – has been the modus operandi and motto of André Knaepen since the very start. It is the North Star in everything we do and try to achieve. The essence is this: we are and always will remain easy to get in touch with, engage with, and do business with, no matter how fast or large we grow. ‘In close cooperation’ is the promise we make to our customers: “We’re in this together.” This translates into a can-do attitude and a ‘contact over contract’ mindset where we fix first, and talk later. Our business model rests on a fundamental principle: trust. We trust that the people who are in charge – of a business line, a division, a project – have the skills to run ‘their business’ successfully with a high degree of autonomy. This freedom comes with a number of rules. It also includes a number of non-intrusive ‘corporate’ control mechanisms. Both the rules and the mechanisms are designed to enable, not to control. We believe in servant leadership, not in control and command. On the other hand: we are one big fleet, not a random flotilla of ships. We navigate by the same compass. We are connected, to each other as well as to the mothership. There may be a lot of leeway in how each individual vessel is being organized and run, we are part of a greater entity.
Best Large Cap Private Equity Exit 2023
Sale of Amadys to ETC Group by Equistone Partners Europe
Comments of the jury
In this category, the jury chose the sale of Amadys by Equistone Partners Europe. This was a complex and particular deal with many stakeholders involved. Amadys is on a commendable journey, having created significant value in a relatively short period by a series of built-up acquisitions supported by private equity funding. The current deal may be seen as a further important milestone in Amadys’ growth strategy.
Sale of Amadys to ETC Group by Equistone Partners Europe
Facts
| Category: | Best Large Cap Private Equity Exit 2023 |
| Deal: | Sale of Amadys to ETC Group, by Equistone Partners Europe |
| Date: | 08/2023 |
| Published value: | Undisclosed |
| Buyer: | ETC Group (now: Netceed) |
| Target: | Amadys |
| Seller: | Equistone Partners Europe |
Involved firms and advisors buy side:
Freshfields Bruckhaus Deringer LLP (legal) and Nielen Schuman (Corporate finance advisor)
Involved firms and advisors target:
Argo Law (legal)
Involved firms and advisors sell side:
Allen & Overy LLP (legal) and Jefferies Group LLC (corporate finance advisor)
Brief description / Deal outline:
Netceed, a leading global provider to the telecom network and technology infrastructure industry with headquarters in France, acquired Belgian Amadys, a leading provider of end-to-end connectivity solutions in the Benelux, UK and DACH regions. Amadys management reinvested in the combined group.
Why should this deal win the Award for Best Large Cap Private Equity Exit?
Submitted by Freshfields Bruckhaus Deringer LLP
Founded in 1993 by Cédric Varasteh, Netceed is a provider of passive and active telecommunications equipment and tools, with leading technical and logistics solutions for network deployment, upgrades, and maintenance. Through its 30 years of extensive industry experience, Netceed supports technologies including FTTH, FTTx, HFC, Wi-Fi, 5G/mobile, and data centres. Netceed has more than 1,200 employees across more than 40 locations that span 14 countries including the US, France, UK, Germany, Portugal and Poland and supports more than 14,000 customers worldwide including major American and European operators and telecommunications service providers. The group’s comprehensive portfolio of more than 55,000 products from nearly 1,000 industry-leading suppliers, along with its value-added supply chain solutions, supports carriers to deliver seamless high-speed internet, video, data, and voice services to residential, business, and mobile users.
Based in Antwerp, Amadys is a leading system integrator of end-to-end connectivity solutions for the telecom, infrastructure, and energy markets. Amadys serves more than 1,000 blue-chip customers and provides solutions from more than 500 suppliers across the UK, Benelux, DACH regions. The business is led by one of its founders, Hein Wilderjans, and has been majority owned by Equistone since 2019. Amadys’ management team, who are existing shareholders in the business, will reinvest in the transaction. Amadys recently received a certification from a leading provider of business sustainability ratings, demonstrating Amadys’ strong sustainability credentials, including from a supply chain perspective.
The combination of Netceed and Amadys is highly complementary and is expected to provide opportunities for both organisations to leverage enhanced product offerings and capabilities, as well as to realise synergies across the combined business. The unification will also further enhance the management team, bringing together two highly entrepreneurial groups. The combined company’s distribution capabilities will support customers’ active and passive equipment needs for network deployments, upgrades, and maintenance during a time of increasing demand for high-speed connectivity across their combined footprint.
Submitted by Argo Law
Amadys is an exceptional company which has as a main priority the commitment to provide the best end-to-end solutions in the network market. The distribution capabilities of Amadys will support customers’ needs for active and passive equipment for network deployments, upgrades and maintenance at a time of increasing demand for high-speed connectivity.
This deal may be seen as an important milestone in Netceed’s growth strategy, with Amadys offering broader access to key markets, operational capabilities and customer diversity. Amadys has grown extremely fast over the past eight years and it’s only expecting to continue its growth under the ETC umbrella.
The Paris-based Netceed group was founded in 1993 by entrepreneur Cédric Varasteh. It is a supplier of passive and active telecommunications equipment and tools. Netceed accounted for over EUR 1 billion in turnover in 2021.
Amadys has been on an acquisition spree itself in recent years. Just at the end of February, it laid hands on Hungarian RayNet. The Antwerp-based group has since operated in Belgium, the Netherlands, Germany, Denmark, the UK, Austria, Slovakia and Hungary.
What was the deal rationale?
The combination will further strengthen both companies materially, including across key areas such as product innovation, scale, and geographic reach. Both companies believe that the impact will significantly benefit both customer bases.
Where lies the value creation?
N.A.
What is the impact of this deal for the stakeholders?
Both companies invest in fiber and telecom infrastructure and accelerating investment in the energy transition.
What was particular about the deal process?
Confidential
Do the management or entrepreneurs deserve a special mention?
We bestow a special mention upon Mr. Hein Wilderjans, the driving force behind Amadys. Hein’s journey is a testament to the power of vision and perseverance. Through his leadership, vision, and tireless efforts, he has not only achieved personal success but has also positively influenced those around him. In addition, his capacity to lead, innovate, and inspire has been instrumental in driving growth and progress in various domains.
Cédric Varasted, founder and chairman of Netceed and currently still a significant minority shareholder, has also done so with Netceed in France and abroad.
Best Mid Cap Private Equity Exit 2023
Sale of Pauwels Consulting to Bert Pauwels, Management and Andera by 3D Investors
Comments of the jury
Since 3D Investors’ entry in 2016, Pauwels Consulting grew from an SME into a Belgian market leader in Belgium, while simultaneously growing a strategic market position in the Netherlands. Its turnover grew fivefold, thanks to continuous organic growth combined with 12 acquisitions in Belgium and the Netherlands. The exit of 3D and the entry of Andera Partners allowed the founder, Bert Pauwels, to regain a majority stake in his company, together with the management. Andera Partners aims to support Pauwels’ Consulting further growth at the European level.
Sale of Pauwels Consulting to Bert Pauwels, Management and Andera by 3D Investors
Facts
| Category: | Best Mid Cap Private Equity Exit 2023 |
| Deal: | Sale of Pauwels Consulting to Bert Pauwels, Management and Andera by 3D Investors |
| Date: | 14/06/2023 |
| Published value: | Undisclosed |
| Buyer: | Bert Pauwels (Founder and CEO), Management, Andera
Partners |
| Target: | Pauwels Consulting |
| Seller: | 3D Investors |
Involved firms and advisors buy side:
Legal and HR DD: Argo Law and Younity
Transaction documentation support: Argo Law
Financial and Tax DD: Deloitte
Commercial DD: EY-Parthenon;
Bert Pauwels and Management: idem as the target.
Involved firms and advisors target:
M&A: EY M&A
Debt Advisory: EY M&A and EY Debt Advisory
Financial Vendor DD: EY Transaction Diligence
Transaction documentation support: Stibbe
Financing documentation support: Allen & Overy
Involved firms and advisors sell side:
Transaction documentation support: Eubelius
Brief description / Deal outline:
Pauwels Consulting, a leading Belgian specialist in outsourcing highly skilled profiles in the fields of Life Sciences, IT and Engineering, has been acquired by Bert Pauwels and Management, together with Andera Partners, a leading European private equity firm, replacing 3D Investors as Pauwels Consulting’s long-term private equity partner.
Why should this deal win the Award for Best Mid Cap Private Equity Deal?
Submitted by EY
Project Phoenix should win the Award for Best Mid Cap Private Equity Exit 2023 as the transaction is truly unique in several ways:
Most importantly, Pauwels Consulting, founded in 1999 by its CEO Bert Pauwels, is an exceptionally well-run company. The Company is specialized in outsourcing of white-collar profiles in the fields of Life Sciences, IT and Engineering, representing segments that are experiencing a boost in demand for consulting and staffing solutions as a result of the ongoing war for talent towards highly skilled employees. Pauwels Consulting services a large customer base, comprising several blue-chip clients across a wide variety of industries, including a.o. Pfizer, P&G, GSK, Ahold Delhaize and ASML. Throughout the years, Pauwels Consulting has proven its ability to train and retain its staff in a context of scarcity of qualified consultants thanks to a strong emphasis put by management on the well-being of their employees, for which the Company was nominated as a “Great Place to Work” in 2021 and 2022. Additionally, between 2006 and 2022, Pauwels Consulting was nominated as a Trends Gazelle in each year consecutively, of which the last 6 years in the Large Enterprises category. In 2022, the Company and its highly skilled workforce of more than 1.500 consultants generated more than €150 million in turnover and approximately €18 million in EBITDA.
Secondly, it is the perfect example of an initially purely Belgian SME that, with the support of a professional Belgian financial investor, 3D Investors, has been able to grow into a market leader in Belgium, while simultaneously growing a strategic market position in the Netherlands. Since 3D Investors’ entry in 2016, Pauwels Consulting has quintupled its turnover, as a result of strong continuous organic growth in combination with a successful buy-and-build track record, having carried out 12 acquisitions in Belgium and the Netherlands throughout the last 7 years.
Furthermore, Pauwels Consulting has now attracted a new, larger-scale European financial investor who will further support the Company’s buy-and-build strategy, with the goal of developing Pauwels Consulting into a leading market player at the European level. Andera Partners acquired a significant minority stake in Pauwels Consulting via its Andera MidCap 5 fund, through which the firm carries out minority and majority investments in growth companies alongside entrepreneurs. Andera MidCap 5 raised €750m in committed capital. The transaction emphasizes Andera Partners’ development ambitions in Belgium, which accelerated following the set-up of their office in Antwerp in 2019 and several recent transactions, including a.o. Infra Group and Elan.
Fourthly, the transaction is one in which the Company’s founder and CEO, Bert Pauwels, who fully rolled over his proceeds, has been able to regain a majority stake in Pauwels Consulting, allowing him to direct the Company’s further strategy.
Moreover, Pauwels Consulting’s Management has been given the opportunity to (re)invest in the Company, aligning their interests and allowing them to benefit from the growth that Pauwels Consulting will experience during Andera Partners’ investment period. Their potential proceeds could be optimized by means of a management incentive plan offered by Bert Pauwels and Andera Partners.
To conclude, we are convinced that (i) the unique profile of Pauwels Consulting, (ii) the successful track record that the Company was able to achieve together with 3D Investors and (iii) the ambitious and well-defined strategy that Pauwels Consulting and Andera Partners have established to develop the Company into a European market leader, are several key reasons on why this transaction should win the Award for Best Mid Cap Private Equity Exit 2023.
What was the deal rationale?
After 7 years of successful collaboration, the timing was right for 3D Investors to monetize its investment. Simultaneously, as a result of the transaction, Bert Pauwels, the Company’s founder and CEO, was able to reclaim a majority position in Pauwels Consulting, enabling him to steer the Company’s strategy going forward, alongside his management team and together with the help of a new and more internationally-oriented private equity partner. Andera Partners will assist Pauwels Consulting in further executing its buy-and-build strategy across the Benelux, while simultaneously focusing on new market entries, including a.o. in France and the DACH and Scandinavian regions. Finally, the investment by Andera Partners provided an ideal moment for Management to (re)invest in the Company, allowing them to benefit from the expected growth of Pauwels Consulting.
Where lies the value creation?
3D Investors was able to achieve significant added value as a result of several elements:
- During 3D Investors’ investment period, Pauwels Consulting quintupled in turnover and in EBITDA as a result of a combination of successful organic growth and an aggressive buy-and-build track record;
- Strengthening of Pauwels Consulting’s market share in its home market, Belgium, combined with an expansion of its operations towards the Netherlands and the start-up of operations in France results in a ‘size premium’;
- Expansion of service offering to include in-company traineeships and leadership development solutions as a result of the acquisition of Ormit Group;
- Despite the transaction taking place in a challenging macroeconomic environment, a highly attractive exit multiple was achieved, which was partly due to the above-mentioned favorable evolutions;
- Finally, as is the case in most LBO deals, value was created for Pauwels Consulting’s shareholders through deleveraging within the company.
What is the impact of this deal for the stakeholders?
Firstly, Pauwels Consulting’s Management, who have been given the opportunity to (re)invest in the Company’s share capital, will be more closely involved in the realization of the Company’s strategy, in close cooperation with Bert Pauwels and Andera Partners.
In addition, Pauwels Consulting will enter new countries in the mid to long term as a result of its European buy-and-build strategy, allowing (large) international clients to source their external consultants in different countries through the same provider, reducing their administrative burden.
Finally, Pauwels Consulting remains strongly committed to offering an open and inclusive corporate culture, with the intention to retain its title as a “Great Place to Work”, and also continues to invest further in social engagement, including via donations to charitable organizations as was the case in the past with a.o. Think Pink, Alain Moloto VZW and Het Lymefonds.
What was particular about the deal process?
Firstly, the transaction entailed a very swift and timely process, whereby EY M&A was mandated to initiate a full M&A process in mid-January, resulting in a successful closing in mid-June, enabled by a close cooperation between different EY subdepartments:
- The Belgian EY M&A team provided a full scope of M&A advisory services, including drafting marketing materials (incl. an extended teaser and management presentations), identifying and approaching prospective financial investors, managing the data room, coordinating the due diligence process with multiple parties and assisting in negotiations with prospective investors with respect to the necessary transaction documents, etc.;
- The Belgian/Dutch EY Debt Advisory team assisted in the financing track, with offered services including identifying and approaching potential creditors, including both senior and mezzanine debt providers, developing a debt covenant model, reviewing and negotiating with multiple prospective debt providers with respect to term sheets and a senior facilities agreement, etc.;
- The Belgian EY Transaction Diligence team prepared a comprehensive Financial Vendor Due Diligence report, involving a complex consolidation exercise that was influenced by several recently concluded and ongoing acquisitions, resulting in an efficient due diligence process for the buyer;
Secondly, the process involved an intensive financing track, resulting in a bank club deal, whereby Pauwels Consulting’s existing creditors – ING, KBC and BNP Paribas Fortis – were involved, in addition to two new debt providers – Belfius and Caisse d’Epargne Hauts de France. As private debt funds have become a very expensive financing method, the shareholders are pleased to have been able to arrange senior debt provided via this bank club deal. Additionally, the financing pool set up a sizeable acquisition facility to sustain Pauwels Consulting’s significant expansion plan. Pauwels Consulting’s Management is confident in its ability to deliver such plan thanks to a healthy qualified pipeline to execute and drive growth further ahead.
Finally, an attractive incentive plan could be offered by Andera Partners and Bert Pauwels to Pauwels Consulting’s Management.
Do the management or entrepreneurs deserve a special mention?
The Company’s founder, Bert Pauwels, has continuously helmed Pauwels Consulting since 1999 and was a large majority shareholder in the Company alongside only 2 managers until the entry of 3D Investors in 2016. Bert Pauwels was very closely involved in the transaction process, which is equally the case with all M&A transactions carried out by Pauwels Consulting. Finally, he was also willing, together with Andera Partners, to offer an incentive plan to Pauwels Consulting’s Management, which is partly at the expense of his own potential future proceeds.
In addition, Pauwels Consulting’s Management has unfailingly contributed to the successful growth trajectory of the Company. Furthermore, they were committed to achieving a successful transaction process, in which the key managers were closely involved, all under the capable guidance of Pauwels Consulting’s CFO, Thomas Eggermont. Finally, Management has (re)invested in the share capital of the Company, representing their willingness to ensure the next phase of Pauwels Consulting’s growth ambitions.
Best Venture Capital Deal – Technology 2023
Keyrock
Comments of the jury
The winner in this category was Keyrock, a technology-driven digital asset market maker active on 85+ trading venues worldwide. The name Keyrock doesn’t ring a bell in the Belgian VC market, but the jury was impressed by the sheer size of the 72 million dollar Series B fundraise. This deal comprises international top-quality investors Ripple, SIX Fintech Ventures and Middlegame Ventures and the Belgian VC, Volta Ventures. The company has managed to realise exponential growth and resulting value creation in a challenging market, especially given the current turmoil in the cryptocurrency market.
Keyrock raised $72 million in Series B Financing Round
Facts
| Category: | M&A Awards Best Venture Capital Deal – Technology |
| Deal: | Keyrock raised $72 million in Series B Financing Round |
| Date: | 30/11/2022 |
| Published value: | $72 million |
| Buyer: | Ripple, Seeder Fund, MiddleGame Ventures, SIX FinTech Ventures, Chris Larsen |
| Target: | Keyrock |
| Seller: | N.A. |
Involved firms and advisors buy side: N.A.
Involved firms and advisors target: N.A.
Involved firms and advisors sell side: N.A.
Brief description / Deal outline:
The company raised $ 72 million of Series B venture funding in a deal led by Ripple in September 2022. SIX FinTech Ventures, Seeder Fund, MiddleGame Ventures and Chris Larsen has also invested in this round. The funds will be used to invest in infrastructure development, scalability tools and regulatory licensing across Europe, the U.S. and Singapore.
Why should this deal win the Award for Best Venture Capital Deal?
N.A.
What was the deal rationale?
Not submitted by any advisors (data sources: Pitchbook, Zephyr, De Tijd, & company’s webiste)
“In the last five years we have focused strongly on doing things with a long-term perspective and haven’t taken any shortcuts. Due to this focus, we now have a highly robust foundation. The new round of funding allows us to expand on that and dramatically accelerate executing our vision to provide liquidity solutions for all digital assets. By doubling down on our focus on clients and scalability, we will be looking to expand into new markets with targeted services.” said Kevin de Patoul, CEO of Keyrock.
“Keyrock has provided scalable liquidity solutions to all kinds of stakeholders in the digital asset space, including Ripple. We have been partners for over three years and watched Keyrock’s global success. Under the leadership of Kevin, Jeremy and Juan, Keyrock has established themselves as a key player in the space by building scalable, enterprise grade solutions and taking a regulatory first approach. We look forward to continuing working alongside the team to help support their next stage of growth.” said Maxime Fages, Director of Institutional Markets at Ripple.
“We are proud to see how the Keyrock team advanced their business and successfully manoeuvred through very difficult market conditions. They showed incredible resilience and with the current founding round we believe Keyrock will establish itself as one of the top-tier liquidity solution providers for digital assets not only in Europe but globally.” said Andreas Iten, Head SIX Fintech Ventures and CEO of F10.
“We are delighted to continue to partner with Keyrock on its growth trajectory. Keyrock and its leadership team have proven to be incredibly effective and MiddleGame Ventures has no doubt they will continue growing and expanding with the array of solutions they have developed in the digital assets space.” said Pascal G. Bouvier, Managing Partner at MiddleGame Ventures.
Where lies the value creation?
Provider of liquidity services intended to democratize cryptocurrency liquidity. The company’s services include order book replication, trade execution, and spot execution, enabling clients within the cryptocurrency ecosystem to operate exchanges and brokerages efficiently.
What is the impact of this deal for the stakeholders?
N.A.
What was particular about the deal process?
N.A.
Do the management or entrepreneurs deserve a special mention?
N.A.
Best Venture Capital Deal – Life Sciences 2023
Aphea.Bio
Comments of the jury
The jury was impressed by Aphea.Bio. Started in 2017 as a spin-off of VIB, the cradle of many successful biotech companies, Aphea.Bio turned in six years’ time into a top-notch agricultural technology company. In the summer of 2023, the company secured a 70 million euro Series C funding round provided by highly reputable international and local investors and supported by the Bill & Melinda Gates Foundation.
The jury was charmed by the combination of a world-class team under the inspired leadership of co-founder and CEO Isabel Vercauteren, with strong scientific foundations and promising products that can effectively tackle the significant challenges faced in modern agricultural practices. Aphea.Bio’s ultimate goal is to supply the growing world population, both in North and South, with sufficient and healthy food.
Aphea.Bio
Facts
| Category: | Best Venture Capital Deal – Life Sciences 2023 |
| Deal: | Aphea.Bio NV |
| Date: | 20/07/2023 |
| Published value: | € 70 million |
| Buyer: | Investors’ syndicate: (i) Innovation Industries Fund III Coöperatief U.A.,
(ii) Korys Investments NV, (iii) Federale Participatie- en investeringsmaatschappij NV and (iv) BNP Paribas Fortis Private Equity Belgium NV.
The Bill & Melinda Gates Foundation. Existing shareholders: (i) V-BIO Fund 1 NV, (ii) Participatiemaatschappij Vlaanderen NV, (iii) Biotech Fonds Vlaanderen NV, (iv) Gemma Frisius-Fonds K.U. Leuven NV, (v) Qbic II Fund Arkiv NV, (vi) Agri Investment Fund BV, (vii) Good Harvest Ventures I SCSP, (viii) ECBF I SCSP and (ix) Group Vanden Avenne Commodities NV. |
| Target: | Aphea.Bio |
| Seller: | N.A. |
Involved firms and advisors buy side:
Investors’ syndicate:
Financial & tax: Innovation Industries Fund III Coöperatief U.A; ECBF I SCSP
Legal: Baker McKenzie
Bill&Melinda Gates Foundation:
Legal: K&L Gates
Involved firms and advisors target:
Legal: Deloitte Legal – Lawyers
Involved firms and advisors sell side: N.A.
Brief description / Deal outline:
The transaction regards the Series C financing round in Aphea.Bio by a syndicate of new investors, the Bill & Melinda Gates Foundation and a number of existing shareholders for an aggregate amount of 70 Mio EUR, being the largest investment round in a Belgian scale up in 2023.
Why should this deal win the Award for Best Venture Capital Deal?
Submitted by Deloitte Legal
Aphea.Bio was founded in 2017 as a spin-off of the Flanders Institute for Biotechnology (VIB). It is a fully integrated microbial product development company dedicated to food security and ensuring a safe and healthy food chain and is providing novel, science-based solutions to build the agriculture of the future: sustainable, reliable, and profitable.
The agrotech company raised 70 Mio EUR in its Series C financing round, the largest investment round by a Belgian scale up company this year. Solidifying its position as a frontrunner in biological product development for agriculture.
Aphea.Bio’s pioneering approach to agricultural sustainability is a testament to its commitment to solving critical global challenges. By harnessing the power of microbiomes and synthetic biology, Aphea.Bio has developed a suite of cutting-edge products that enhance crop productivity while reducing the need for chemical fertilizers and pesticides.
Investing in Aphea.Bio more than mere financial returns, it’s also about contributing to a sustainable future. The main investor is Dutch venture fund Innovation Industries. Korys, federal investor FPIM and bank BNP Paribas Fortis are also coming on board. Next to that Aphea.Bio received strong support from returning investors ECBF, Astanor, AIF as well as other existing shareholders. In addition, the Bill & Melinda Gates Foundation join as a new investor the Series C financing round.
Aphea.Bio’s partnership with the Bill & Melinda Gates Foundation will support the development of biostimulant products designed to address the unique needs of smallholder farmers in the foundation’s priority geographies in Sub-Saharan Africa and South Asia.
For its original markets, the company is aiming for commonly grown plants such as winter wheat and maize. With the money from the Bill & Melinda Gates Foundation, Aphea.Bio will now start field trials for typical crops in poorer countries: cassava, rice, sorghum and poultry millet.
By investing in Aphea.Bio NV, the investors demonstrate their commitment to fostering innovation that addresses one of the world’s most pressing challenges: feeding a growing global population while minimizing environmental impact.
The investors’ confidence in Aphea.Bio’s potential stems from its track record of success. The company has demonstrated its capabilities by developing and commercializing highly effective biological crop solutions. With the Series C financing, Aphea.Bio is poised to scale its operations and expand its reach, capitalizing on the momentum it has built over the years.
This deal embodies the spirit of venture capital by not only driving financial success but also contributing to a more sustainable and prosperous future.
What was the deal rationale?
With the Series C financing round Aphea.Bio wants to meet its four major objectives (i) to launch its products that are well advanced in Europe, (ii) realize expansion into the US and Brazil, (iii) launching new research projects, such as on coating seeds with microorganisms that are fungicidal, and (iv) looking at bioinsecticides and bioherbicides for a total herbicide that can replace glyphosate. Nex to that, Aphea.Bio is able through the Series C financing to hire additional staff and is building a pilot plant to scale up its fermentation capacity.
Where lies the value creation?
The Series C financing will allow Aphea.Bio NV to further advance research and development in biologicals, scale product launches, expand market reach and commercialise product offerings. Aphea.Bio’s partnership with the Bill & Melinda Gates Foundation will support the development of biostimulant products designed to address the unique needs of smallholder farmers in the foundation’s priority geographies in Sub-Saharan Africa and South Asia.
What is the impact of this deal for the stakeholders?
Gaaj Greebe, Partner at Innovation Industries and David Devigne, Investment Director at Korys Investments joined Aphea.Bio’s board of directors.
Caaj Greebe, Partner at lead investor Innovation Industries states, “Aphea.Bio possesses several qualities that we actively seek in a company: a world-class team, strong scientific foundations, and promising products that can effectively tackle the significant challenges faced in modern agricultural practices. We are thrilled to have led this financing round alongside an exceptional group of investors to support Aphea.Bio in its next phase of growth towards a global commercial organisation.”
David Devigne, Investment Director at Korys Investments states, “We are delighted to support Aphea.Bio in driving the biological revolution in agriculture. Aphea.Bio’s ultimate goal of addressing the ever-increasing challenge of supplying the growing world population with sufficient and healthy food while using less land and pesticides fully aligns with Korys’ investment philosophy.”
Isabel Vercauteren, CEO of Aphea.Bio says: “We are excited to have secured Series C Funding, which not only validates our mission to enable sustainable, profitable, and reliable farming, but also propels us toward commercialisation. This investment will allow us to broaden our operations and bring our products to market at a larger scale, so we can address urgent agricultural challenges and meet the needs of farmers worldwide, while at the same time ensuring accessibility and affordability for smallholder farmers in low-income countries.”
Next to that Isabel Vercauteren, CEO of Aphea.Bio, points out in De Tijd that political and regulatory momentum is also pushing organic crop protection: “Europe, with its Green Deal policy, is playing the card of sustainable agriculture. Farmers need organic products like ours because they are allowed to emit less nitrogen and have to fertilize more efficiently.”
The vast majority of the existing shareholders (including even seed investors), continue to support the company having participated in this Series C financing round for almost half of the total value of the round.
What was particular about the deal process?
As part of the deal process various stakeholders with their own interests and specificities needed to be aligned on the financing structured of the deal as well as the future strategy and focus of Aphea.Bio.
The vast majority of the existing shareholder reinvested in Aphea.Bio as well as new investors, with as lead the Dutch venture fund Innovation Industries putting more than a seventh of the total amount of the round on the table. The Colruyt family (through Korys), federal investor FPIM and BNP Paribas Fortis are also coming on board as investors. Next to that, Bill & Melinda Gates Foundation joined as a new investor.
The Gates Foundation sees in Aphea.Bio a link that can contribute to the eradication of hunger in the world. This opens a new business model for Aphea.Bio beyond Europe, the US and Brazil, which is initially targeted: the market of poor farmers in emerging countries who have to survive on their crops. The Gates Foundation is an atypical investor, with peculiar requests in connection with its investment concerning the availability of products to stimulate crop growth at affordable prices in Africa and Southeast Asia.
Do the management or entrepreneurs deserve a special mention?
The CEO of Aphea.Bio, Isabel Vercauteren, was involved from the Series A financing round and led the company from an early-stage spin-off, through the different stages of research and development and various financing rounds, to one of the most valuable and promising companies in the Belgian agrotech landscape.
Lifetime Achievement Award 2023
Jos Peeters
Comments of the jury
Jos Peeters is a trailblazer in the realm of venture capital, and his distinguished career spans over three decades. As the founder of Capricorn Partners and Quest for Growth, he has overseen the management of diverse funds, totalling more than 500 million euros, leaving an indelible mark on the venture capital landscape in Flanders.
Jos his career boasts numerous pivotal moments and significant accomplishments contributing to the European venture landscape. He was the founder and first President of the Belgian Venture Association (BVA). His co-founding of EASDAQ, a pan-European exchange for growth equities, is a testament to his expertise in shaping financial markets. Notably, EASDAQ laid the foundation for Equiduct, an influential trading platform. His visionary role in conceptualizing the public-private partnership structure, now flourishing in its private iteration, underscores his foresight in identifying trends and pioneering revolutionary financial models.
Jos Peeters holds influential positions in the business world, with roles as the Founder and Chairman of the Executive Committee at Capricorn Partners, a Board member at Confo Therapeutics, and a Director at Quest For Growth. His diverse experience in venture capital includes a stint as the Managing Director of BeneVent Management, associated with the Almanij-Kredietbank Group. Prior to these pivotal roles, he gained experience at PA Technology and Bell Telephone Manufacturing Company, setting the stage for his remarkable entrepreneurial journey.
Beyond the corporate sphere, Jos has chaired the European Venture Capital Association (EVCA) and is currently a Director of EASDAQ NV, overseeing the “Equiduct” platform for secondary equities trading. His global impact extends to his membership on the Global Advisory Board of the London Business School, along with his honorary fellowship at Hogeheuvel College and chairmanship of Science at Leuven, both affiliations rooted in the prestigious University of Leuven (KUL). His academic prowess is exemplified by his doctorate in physics from the esteemed University of Leuven.
Jos Peeters’ exceptional skills, expertise, and leadership have been instrumental in his remarkable journey. He possesses a unique ability to foresee market gaps and proactively address them. Under his stewardship, Capricorn Partners has emerged as a beacon of excellence, setting new industry standards and redefining the realms of possibility within the venture capital landscape.
In the vast tapestry of the business world, Jos Peeters stands as a titan of entrepreneurship, his name synonymous with pioneering ventures. It is with deep admiration and respect that the Jury chose Jos Peeters for the prestigious Lifetime Achievement Award, a recognition that not only reflects his outstanding accomplishments but also serves as a tribute to a lifetime dedicated to fostering the private equity sector in Belgium and beyond.